National Bank tops expectations on greater income

Article content material

National Bank of Canada topped analysts’ first-quarter expectations on Wednesday after posting greater income progress in all enterprise segments.

Article content material

Article content material

The Montreal-based financial institution’s internet earnings for the three months ending Jan. 31 was $997 million, up from $922 million throughout the identical interval a yr in the past, leading to internet earnings per share of $2.78.

Adjusted earnings, which exclude sure gadgets associated to National Bank’s acquisition of Canadian Western Bank, had been $1.05 billion, down from $922 million a yr in the past, leading to adjusted earnings per share of $2.93 in comparison with analysts’ expectations of $2.65 per share.

Article content material

“The financial institution generated sturdy first-quarter monetary outcomes, reflecting stable execution throughout enterprise segments and our diversified earnings energy,” chief government Laurent Ferreira mentioned in an announcement. “In a context of heightened macroeconomic and geopolitical uncertainty and an evolving credit score cycle, we stay dedicated to sustaining our regular self-discipline relating to credit score, capital and prices.”

Canada’s greatest banks are releasing their first-quarter earnings outcomes this week, with United States President Donald Trump anticipated to impose tariffs on Canadian exports to the U.S. subsequent week, a transfer some economists say may set off a recession in Canada.

Results launched by the Bank of Montreal and Bank of Nova Scotia on Tuesday included a slight financial cushion in case Trump approves his deliberate tariffs. If the proposal to use a 25 per cent tariff on most Canadian merchandise goes by way of, each banks anticipate to maintain more cash apart within the second quarter to sort out credit score losses.

In the non-public and industrial section, National Bank’s internet earnings totalled $290 million, which was 14 per cent decrease than final yr, primarily resulting from a major improve in provisions for credit score losses — the cash banks hold apart to sort out loans that will probably go dangerous.

Article content material

The financial institution, nevertheless, earned greater income in its wealth administration, monetary markets and U.S. companies.

Earlier this month, National Bank accomplished its acquisition of Edmonton-based Canadian Western Bank, which it mentioned would speed up its progress throughout Canada.

“This enterprise mixture brings collectively two complementary Canadian banks with rising companies,” the banks mentioned in an announcement.

National Bank additionally declared a dividend of $1.14 per frequent share for the quarter ending April 30, 2025.

• Email: nkarim@postmedia.com

Bookmark our web site and assist our journalism: Don’t miss the enterprise information you want to know — add financialpost.com to your bookmarks and join our newsletters right here.

Article content material